Japan: Private sector activity falls at unprecedented pace in April
The Jibun Bank Composite Purchasing Managers’ Index (PMI), which combines the PMIs of the services and manufacturing sectors, slumped to 27.8 in April from a revised 36.2 in March (previously reported: 35.8), according to a flash reading. This suggests private sector activity declined from the previous month at the fastest pace since records began almost 13 years ago.
Joe Hayes, economist at IHS Markit, reflected: “PMI data for Japan tell us that the crippling economic impact from the global coronavirus pandemic intensified in April. Furthermore, the data shows us the initial impact of Japan’s lockdown.”
The services PMI led the decline in April, falling to a record low of 22.8, down from 33.8 in March. The manufacturing PMI decreased to 43.7 in April, down from 44.8 in March and marking the fastest drop in activity since April 2009. Weakness in the manufacturing sector was largely due to sharp decreases in output and new orders.